Chinese domestic steel section prices mostly move up

Chinese domestic steel section prices have fluctuated in an upward direction during the past week. 

As for billet, prices of the semi-finished steel product in the Chinese domestic market have softened slightly in the past seven days. In Tangshan, the current price of Q235 150 mm x 150 mm square billet is at RMB 3,900/mt ($602/mt), the price of 165 mm x 225 mm rectangular billet stands at RMB 3,920/mt ($605/mt), while the price of 20MnSi billet is at around RMB 4,000/mt ($618/mt). The prices are all ex-mill, including 13 percent VAT.

Overall trading activity in the domestic steel section market has been weak due to the cold weather and the reemergence of the coronavirus in central China recently. Upstream billet prices have fluctuated at high price levels, still providing support for steel section prices. Supply volumes and market inventories have remained at low levels, causing traders to choose to increase their quoted prices. As for the week ahead, considering that support from costs and low market inventory is still strong while at the same time demand has been impacted by cold weather, it is believed that steel section prices may just edge down slightly.

The prices are all ex-mill, including 13 percent VAT.

$1 = RMB 6.476